IATA said on Monday that it expects airlines’ earnings to reach USD 36 billion, which is somewhat higher than the USD 32.4 billion reported last year.
Willie Walsh, the Director General of the International Air Transport Association (IATA), stated that airspace should not be involved in trade disputes while speaking at the organization’s Annual General Meeting (AGM) in the nation’s capital.
After forty-two years, the AGM is being held in India.
Walsh raised worries about supply chain problems, pointing out that there is a 17,000 aircraft backlog and 1,100 aircraft under 10 years old that are in storage, while the fleet replacement rate is only 3%.
According to IATA, airlines worldwide are anticipated to generate a profit of USD 36 billion in 2025, which is somewhat less than the USD 36.6 billion forecasted in December 2024 but still more than the USD 32.4 billion achieved in 2024.
Walsh claimed that although the USD 36 billion profit is noteworthy, it only amounts to USD 7.20 per passenger each segment.
“It’s still a thin buffer and any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry’s resilience to the test,” he stated.
According to IATA, which represents over 350 airlines that account for more than 80% of worldwide air traffic, the airline industry’s revenues are predicted to hit a historic high of USD 979 billion in 2025, approximately 1.3% higher than the amount recorded in 2024.
It is anticipated that approximately 1,700 people will attend the AGM and the World Air Transport Summit.
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IATA reports that 3,69,700 people are directly employed by India’s aviation sector, which also contributes USD 5.6 billion to the country’s GDP.
These figures increase to 7.7 million jobs and USD 53.6 billion of GDP (1.5%) when indirect, induced, and tourism impacts are taken into account.
In 2026, Brazil will host the next IATA AGM.
